Rane (Madras) Limited Receives ₹5.08 Crore Tax Demand Rectification Order
Rane (Madras) Limited received a rectification order from the Income Tax Department, Bangalore, levying an additional interest of ₹1.63 Crores on a prior tax demand of ₹3.45 Crores, resulting in a total demand of ₹5.08 Crores. The company plans to contest this order.
The tax demand of ₹5.08 Crores is a material amount for the company and could impact its financials if not successfully contested.
The company has received a significant tax demand with interest, which it plans to contest, indicating a potentially negative financial impact.
Rane (Madras) Limited has received a rectification order from the Centralised Processing Centre, Income tax Department, Bangalore, levying an additional tax demand and interest.
The order, dated April 07, 2026, pertains to Assessment Year 2021-22. Previously, on December 26, 2022, the Income Tax Department had passed an order levying a tax demand of ₹3.45 Crores, which is currently under appeal.
The rectification order from CPC Bangalore now levies interest of ₹1.63 Crores due to non-payment of Tax Deducted at Source (TDS) on a buyback of shares. This brings the aggregate tax demand to ₹5.08 Crores (₹3.45 Crores existing + ₹1.63 Crores enhanced).
Rane (Madras) Limited stated that the department has not considered the fact that the company has already paid ₹2.58 Crores towards the TDS on the buyback. The company intends to contest the order before the appropriate authority within the prescribed timelines.
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Rane (Madras) Limited filed this with the NSE as a statutory disclosure, categorised under taxation. It is a primary document, not a recommendation, and the desk marks it medium impact: worth reading, rarely worth acting on by itself.
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See the model portfoliosA plain-language summary of a public exchange filing by Rane (Madras) Limited. Read the original for the full detail.